Which of the following is considered an ethical threat?

Self-review is considered an ethical threat because it arises when an individual is in a position to evaluate their own work or performance, potentially compromising objectivity and impartiality. This situation could occur, for instance, when an auditor has previously provided services, such as preparing financial statements, that they must later audit. The threat here is that the auditor may be biased in their review because they have a vested interest in the work that they previously completed.

In the context of ethical standards, self-review can undermine the integrity of financial reporting and assurance services, leading to a lack of trust from stakeholders. This is why professional bodies emphasize the need for safeguards and vigilance to mitigate such threats and uphold the credibility of the profession.

Independence, transparency, and accountability, while important concepts within ethics and accountability frameworks, do not inherently represent threats. Instead, they are principles designed to foster ethical behavior and trustworthiness in professional practices. Independence refers to the obligation to remain unbiased and free from conflicts of interest, transparency relates to the openness of operations and information sharing, and accountability pertains to being responsible for one's actions and decisions. These principles support ethical conduct, rather than presenting threats to it.